Share:
  • AUD/USD struggled around 0.6800 and dropped towards its daily lows below 0.6730s, losses 0.86%.
  • Last week’s US inflation data and the Consumer Price Index on Tuesday underpin the US Dollar.
  • AUD/USD traders eye Australia’s Business Confidence and Conditions ahead of the US CPI.

The Australian Dollar (AUD) snapped three days of gains and dropped 0.84%, following last Friday’s US producer’s inflation data, ahead of the release of the Consumer Price Index (CPI) in the United States (US). An upbeat sentiment that usually bolsters the AUD/USD keeps the AUD pressured. Therefore, the AUD/USD is trading at 0.6735 after hitting a daily high, shy of the 0.6800 figure.

US Consumer Price Index looming, a headwind for the AUD/USD

Risk appetite improved, as shown by US equities rising. The lack of economic data from the US and Australia kept investors digging into last week’s US economic data. The Department of Labor revealed last Friday that the Producer Price Index (PPI) rose for three consecutive months, exceeding expectations on an annual base. At 7.4% year-over-year and 6.2%, excluding food and energy prices, such figures indicate inflation being stubbornly stickier than expected. Also, the consumer sentiment improved to 59.1 from 56 .8 according to the University of Michigan’s data released Friday, although inflation projections dropped slightly, with one-year horizon forecasts dropping to 4.6% from 4.9%.

The US Consumer Price Index (CPI) could be a catalyst in determining the AUD/USD pair direction. The CPI is expected to decrease from 7.7% YoY to 7.3%, while core CPI is foreseen to fall from 6.3% to 6%. If findings indicate cooling inflation conditions, it may result in the US Dollar weakening further.

The Australian side's lack of economic data leaves the AUD adrift to market sentiment and China’s developments. Despite re-opening many areas in China, investors remain cautious about making decisions with uncertainties surrounding how rising Covid cases could affect economic activity. Recently, Chinese authorities have taken steps such as shutting down their tracking app and removing all “at risk” decrees from Shanghai effective December 13th, hopefully providing further insight into future developments.

On Tuesday, the Australian economic calendar will feature Business Confidence and Business Conditions, both released revealed by the National Bank of Australia. This comes in anticipation of the upcoming US Consumer Price Index (CPI) release on Tuesday and the Federal Reserve’s monetary policy decision on Wednesday.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price 0.6736
Today Daily Change -0.0059
Today Daily Change % -0.87
Today daily open 0.6795
 
Trends
Daily SMA20 0.6724
Daily SMA50 0.6527
Daily SMA100 0.668
Daily SMA200 0.691
 
Levels
Previous Daily High 0.6814
Previous Daily Low 0.6744
Previous Weekly High 0.6851
Previous Weekly Low 0.6669
Previous Monthly High 0.6801
Previous Monthly Low 0.6272
Daily Fibonacci 38.2% 0.6787
Daily Fibonacci 61.8% 0.677
Daily Pivot Point S1 0.6754
Daily Pivot Point S2 0.6714
Daily Pivot Point S3 0.6684
Daily Pivot Point R1 0.6824
Daily Pivot Point R2 0.6854
Daily Pivot Point R3 0.6894

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD retreats toward 1.0800 after US data

EUR/USD retreats toward 1.0800 after US data

EUR/USD has lost its traction and declined toward 1.0800 with the initial reaction to the upbeat consumer confidence data from the US. Meanwhile, Wall Street's negative opening seems to be helping the US Dollar find its footing and making it hard for the pair to stretch higher.

EUR/USD News

GBP/USD clings to modest daily gains near 1.2300

GBP/USD clings to modest daily gains near 1.2300

GBP/USD has retreated to the 1.2300 area in the early American session with the US Dollar finding demand amid the negative shift witnessed in risk mood. The data from the US revealed that the CB Consumer Confidence Index rose modestly in March.

GBP/USD News

Gold pulls away from session highs, holds near $1,960

Gold pulls away from session highs, holds near $1,960

After having climbed toward $1,970 earlier in the day, Gold price erased a portion of its daily gains and retreated to the $1,960 area. The benchmark 10-year US Treasury bond yield stays in positive territory above 3.5%, not allowing XAU/USD to gather further bullish momentum.

Gold News

Ethereum (ETH) options traders turn bearish ahead of the token unlock

Ethereum (ETH) options traders turn bearish ahead of the token unlock

Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security. 

Read more

S&P 500: With banking crisis in rear view, market pushes index closer to 4,000

S&P 500: With banking crisis in rear view, market pushes index closer to 4,000

The S&P 500 on Monday moved ahead cautiously without much fanfare after the US government agreed to sell $72 billion worth of Silicon Valley Bank assets to First Citizens Bank (FCNCA). 

Read more

Forex MAJORS

Cryptocurrencies

Signatures